National income is the sum of factor incomes accruing to which of the following options?
Answer & explanation
Correct answer: option 3
National Income is the sum of the factor incomes accruing to the "Residents" of the country.
Normal resident of a country is said to be a person who fulfils the following 2 conditions:
- Has stayed in the country for more than a year
- Individual should carry out the basic economic activities of spending, earnings and accumulation in that country.